Committed MRR (CMRR)

Committed MRR (sometimes called CMRR) takes your current MRR and adjusts it for everything you already know is coming. Signed contracts that haven't started yet, confirmed cancellations that haven't taken effect, pending upgrades and downgrades. It's MRR with the near future baked in.

How CMRR differs from MRR

MRR is a snapshot of today. It tells you exactly what your active subscriptions are generating right now. CMRR looks ahead by factoring in commitments that haven't hit your books yet.

Here's an example. Your current MRR is $50,000. You have $3,000 in signed contracts starting next month, $1,500 in confirmed upgrades, and $1,000 in confirmed cancellations. Your CMRR is $53,500. That's a more honest picture of where your revenue is heading than $50,000 alone.

CMRR = Current MRR + Signed New Contracts + Confirmed Expansions − Confirmed Cancellations − Confirmed Downgrades

Why CMRR is useful for forecasting

Standard MRR can lag behind reality. A customer who signed an annual contract last week might not appear in your MRR until their onboarding is complete. A customer who submitted a cancellation request won't drop off until their billing period ends. CMRR closes that gap.

Investors and board members increasingly ask for CMRR because it strips out the timing noise. If you're selling annual contracts through Stripe or Chargebee with a two-week onboarding before billing starts, standard MRR won't reflect those deals until activation. CMRR does.

For planning purposes, CMRR paired with net new MRR trends gives you a much clearer view of your trajectory than either metric alone.

Protecting your CMRR

Committed revenue can still erode. We've seen it happen: a customer signs an annual contract, everything looks locked in, then the payment fails at renewal and that CMRR evaporates. The same applies to contraction triggered by expired cards or declined charges rather than a genuine desire to downgrade.

Automated dunning protects your committed revenue by recovering failed payments before they turn into cancellations. When you've already done the work to win a commitment, the last thing you want is a payment failure undoing it.